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Commodity Management Toolkit

Version V2.1_January 2018

Go To: START page Next page There are 10 sub-processes in the CM Lifecycle, as follows.

1. Project Start-Up: CM-related activities involving Program Management staff, e.g., contracting service providers for commodity import, finalizing eligibility criteria and CM budget, compiling master recipient list, establishing distribution monitoring system. Note: Ongoing CM-related activities that PM staff are responsible for are included in A. Internal Control and Quality Oversight. 2. Sales Orders: Preparation, submission, and approval of Sales Orders 3. Procurement: USDA tendering process and commodity swaps, loans, transfers, and diversions 4. Ocean Shipment: Tendering shipping contracts with ocean carriers and loading commodity at US port 5. Port Operations: Preparation for vessel arrival, commodity discharge, inspection, and dispatch from port 6. Transport: Tendering, awarding, and administering private transporter contracts 7. Warehousing: Establishing a warehouse; commodity receipt, storage, dispatch, and accounting 8. Distribution: Distribution planning, site set-up, distribution procedures, and reporting 9. Food Distribution Monitoring: Monitor training and scheduling; data collection, synthesis, feedback, and reporting 10. Close-Out: Close-Out Plan preparation and submission, CM-related close-out activities, final reporting

Two additional sub-process cut across many of the 10 lifecycle sub-processes. A. Internal Control and Quality Oversight: Warehouse and distribution control systems, ongoing monitoring, and required reporting B. Internal Losses: Commodity testing, reconstitution, and disposal; loss reporting; investigations and claims

This toolkit is specifically designed for USAID development food security activity commodities. It does not cover emergency programs like that of WFP commodities, or Local and Regional Procurement (LRP) commodities.

This toolkit was developed by The TOPS Program with active involvement of the community of commodity management Start practitioners from the partner agencies. The Technical and Operational Performance Support (TOPS) Program was made possible by the generous support and contribution of the American people through the U.S. Agency for International Development (USAID). The contents of this toolkit were created by The TOPS Program and do not necessarily reflect the views of USAID or the U.S. Government. Next page

The START page is shown below. Hyperlinks help you navigate back to this page, HOW TO NAVIGATE so that you may select another sub-process.

The 12 sub-processes are illustrated here. From the START page, click a sub-process box to view the map of its activities. Click NEXT below, to continue navigation instructions.

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A thick border means the activity contains lower-level tasks. HOW TO NAVIGATE Click the box to access the corresponding map for these tasks.

Each sub-process map is broken down into “swimlanes.”

Swimlanes indicate the function(s) responsible for the activities or tasks within them.

Click NEXT below, to continue navigation instructions.

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Click “Go Back” to return to one Go level higher in the sub-process. Back Next page

HOW TO NAVIGATE Corresponding TOOLS are listed in a green box. All tools for a sub-process are located in a folder for that sub-process. Save the TOOLS to your computer, and adapt them to your local context.

Click the NEXT box to begin exploring the Commodity Management Interactive Life-Cycle Process Maps.

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Commodity Management Interactive Life-Cycle Process Maps

1.0 2.0 3.0 Signed Award Project Start-Up Sales Order Procurement

END

4.0 Ocean 10.0 Shipment Close-Out A.0 Internal Control and Quality Oversight 5.0 9.0 Port Food Distribution Operations Monitoring

8.0 7.0 6.0 Distribution Warehousing Transport

B.0 Internal Losses Go To: Go To: Overview page RESOURCES page Next page.

1.0 PROJECT START-UP

Funding for commodity

HQ component received Awardee

1.2 1.4 1.1 Verify ALL Contract Hire host (and necessary commodity transit) country service 1.6 manager COP requirements providers for commodity Participation Establish written (with HR) of distribution YES Award Modification import agreements with (with agencies? GUIDELINES Procurement) agencies that will Commodity Manager distribute commodity Core Competencies NO 1.11 Request modification of program plan/ 1.3 budget Complete 1.7 1.8 (if necessary) PERSUAP and Establish initial Collect eligibility/ distribution Fumigation monitoring Management graduation criteria data as system

ProgramManagement Plan 1.5 part of project 1.9 (if not completed Conduct baseline Establish during proposal program start- community- stage) up workshop (to level USAID Pesticide Evaluation clarify DIP) FFP Indicators Access Report and Safer Use Action committees 1.10 GUIDELINES Plan (PERSUAP) TEMPLATE Compile GO TO A.0: Phosphine Fumigation Community-Level master Internal Control Management Plan TEMPLATE Committee GUIDELINES recipient Commodity Management list

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1.0 PROJECT START-UP 1.4 Contract necessary service providers

1.4.1 Service providers not contracted during Hire freight proposal stage forwarder Awardee HQ

Freight Forwarder Agreement EXAMPLE

1.4.2

Tender, 1.4.5 approve, and 1.4.4 Tender, approve, contract Tender, approve, and contract one fumigation and contract C&F END service provider independent

ProgramManagement agent surveyor per vessel (with Procurement) (with Procurement) (with Procurement)

Clearing & Forwarding Agent CHECKLIST Independent Surveyor CHECKLIST

Clearing & Forwarding Agent Agreement EXAMPLE Independent Surveyor Agreement EXAMPLE

1.4.3 Clearing & Forwarding on TB/L Agreement EXAMPLE Independent Surveyor on TB/L Agreement EXAMPLE Validate port assessment, even if TB/L

Commodity Management used

Port Assessment CHECKLIST

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1.0 PROJECT START-UP 1.6 Establish written agreements with agencies that will distribute commodity ProgramManagement 1.6.1 Define accountability, Distribution responsibilities, liability agencies identified limits, reporting, and procedures for handling

Agencies commodity distributions Distribution and losses in agreements 1.6.2 Train distribution agency staff on recipient selection/registration, END distribution, monitoring, Distribution Agency Agreement CHECKLIST reporting, and procedures for handling commodity losses Commodity Management

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1.0 PROJECT START-UP 1.7 Collect eligibility/graduation criteria data as part of project baseline

1.7.1 1.7.2 Project baseline Clarify targeting Ensure baseline being designed (eligibility) criteria questions capture Sectors stated in proposal information on eligibility ProgramTechnical

1.7.3 Analyze baseline data on eligibility ProgramManagement

1.7.4 Use data to map out END distribution centers Commodity Management

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1.0 PROJECT START-UP 1.8 Establish distribution monitoring system

On-Site Distribution Monitoring Questionnaire TEMPLATE

Sectors Distribution Site Storage Monitoring Questionnaire TEMPLATE

Post-Distribution Monitoring Questionnaire TEMPLATE ProgramTechnical 1.8.1 Design commodity 1.8.2 Project monitoring distribution monitoring plan Design monitoring team leader hired (based on sample size and forms sampling techniques in

Team proposal) ProgramMonitoring

Food Distribution Monitoring 1.8.4 System GUIDELINES Develop 1.8.3 A Practical Guide to Sampling appropriate Sensitize community END

Program community feedback/

Management complaint mechanisms

Community Feedback & Complaint Mechanism Commodity Management GUIDELINES

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1.0 PROJECT START-UP 1.10 Compile master recipient list

1.10.4 1.10.1 Ensure ration/ID Hire and train START cards comply with distribution approved donor team members

Commodity branding plan Management Distribution Team Member Recipient Ration or ID Card TEMPLATE Responsibilities GUIDELINES

1.10.5 Verify and 1.10.7 register Issue recipient ration/ID 1.10.3 recipients 1.10.2 cards against some form of Identify identification Mobilize provisional Distribution Team community recipients, based Recipient input for on eligibility Registration recipient criteria stated in 1.10.6 GUIDELINES registration Agreement and Identify baseline distribution sites

Distribution Site Identification GUIDELINES Stakeholders Community and Local

1.10.8 Produce electronic Team Monitoring

/ master list/ database MIS

END

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1.0 PROJECT START-UP 1.11 Request modification of program plan/budget (if necessary)

1.11.1 Align activities, Budget modification eligibility criteria, necessary and numbers of recipients with budget ProgramTechnical Sectors

1.11.2 1.11.3 Validate TA Update AER and commodity modification commodity pipeline NO management section necessary? based on revision(s) of DIP and budget to program plan based on current conditions FFPMIS RESOURCES

Commodity Management YES CM Budget Preparation WORKSHEET

CM Logistics Network Design GUIDELINES

CM Staff Functions and Responsibilities GUIDELINES 1.11.4 1.11.6 FFPIB 18-01 Eligible Uses of Section 202(e) for FFP Awards Submit TA END COP Sign TA modification request FFPIB 18-02 Eligible Uses of ITSH for FFP Awards modification to FFP

1.11.5 FFP / Approve TA modification request USAID

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2.0 SALES ORDER

2.1 2.7 2.2 Rerun latest commodity Contract inland Commodity needed calculator (updated by Send request transportation to in 3 to 6 months USAID) and compare to for concurrence final destination budget to ensure funding to USAID NO (see 6.0) availability

Commodity Calculator Inland Online Access GUIDELINES Transport Through bill of Commodity Management Agreement lading? YES EXAMPLE

GO TO 3.0: Procurement HQ 2.3 Awardee Enter sales order (SO) in WBSCM Freight

Forwarder Sales Order Preparation CHECKLIST

2.6 2.4 2.5 Approve SO Mission generates AOR notifies FFP/ concurrence cable

USAID POD of SO (or notes in free text number via email field on SO) USDA

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2.0 SALES ORDER 2.6 Approve sales order HQ Awardee

2.6.3

Revise and resubmit Freight Forwarder

2.6.1 YES

START GEO/CBO reviews, approves, and enters concurrence in WBSCM Revisions needed?

USAID 2.6.2

POD reviews and verifies all certifications in order, and NO approves (within 1 week)

2.6.4

DACO provides END

USDA final approval within 2 weeks

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2.0 SALES ORDER 2.6.4 DACO provides final approval

2.6.4.1 2.6.4.2 2.6.4.3 Validate sanitary and START phytosanitary import Approve policy Route SO to END

USDA requirements for host implications and USDA/FSA/ (and, if applicable, certifications KCCO transit) countries

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3.0 PROCUREMENT Vendors

3.1 3.2 3.3 Sales order GO TO 4.0:

USDA approved Create Award Administer Ocean Shipment tender(s) contract(s) contract(s) FFP / NO USAID 3.5 3.4 3.6 Complete Pipeline analysis reveals Determine Swap or loan commodity Request transfer shortage feasibility of YES (or emergency need) feasible? swap or loan or diversion commodity from another swap or loan food assistance Commodity Management program

Expedited Commodity Procurement GUIDELINES GO TO 6.0: Transport Freight

Forwarder Ocean NO shipment involved?

YES

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3.0 PROCUREMENT 3.1 Create tender

SO routed from DACO / DACO USDA

3.1.5 Review and 3.1.1 approve Rack up (combine) SOs invitations for the month 3.1.6 Publish invitations in KCCO

/ WBSCM and email 3.1.2 notification 3.1.4

USDA [Commodity Specialist] Provide feedback on Create draft unique specifications to commodity and include in invitation freight invitations

GO TO 3.2

3.1.3 FFP / [POD and Country Backstop Officer]

USAID Confirm list

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3.0 PROCUREMENT 3.2 Award contract(s)

Offers (bids) received (via WBSCM) from vendors

3.2.1 3.2.8 [Specialists] 3.2.6 3.2.7 Create purchase contract award Review bids for Manually evaluate Create, review,

KCCO in WBSCM and / errors socioeconomic and approve send email to programs (e.g., contracts; awardee(s) USDA HubZone or 8(a), if release to within 27 hours applicable) vendors from bid 3.2.2 opening Send bids 3.2.3 3.2.4 received to Evaluate for Review award BEOS (Bid Offer lowest landed recommendations at Evaluation cost ad hoc meeting Optimization GO TO 3.3 System)

3.2.5

FFP Send “authorization / to purchase” email for agreed-upon USAID awardees

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3.0 PROCUREMENT 3.3 Administer contract(s) Vendors 3.3.1 Define shipping periods Contracts released to vendors based on dates in invitation (within 3 days after award)

KCCO 3.3.2 / Post CAR (cargo availability report

USDA for booking vessel) on website (within 1 week after flagging)

3.3.3

DACO GO TO 4.0: / Provide unique documents to Ocean Shipment Awardee freight forwarder USDA

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3.0 PROCUREMENT 3.4 Determine feasibility of commodity swap or loan

Pipeline analysis reveals shortage

3.4.5 3.4.2 3.4.1 If possible, for packaged 3.4.6 commodities, ensure packaging is Agency Verify quality of Arrange logistics to Locate agency YES appropriately marked as having available? available commodity move commodity to that can swap/ been provided through the (e.g., BUBD, warehouse loan commodity friendship of the American people

Commodity Management infestation) as food for peace

3.4.3 END NO Seek approval/ COP concurrence from AOR

3.4.4

FFP AOR sends / Swap or loan GO TO 3.6 NO YES approved? swap or loan agreement to USAID Awardee

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3.0 PROCUREMENT 3.6 Request transfer or diversion from another food assistance program

3.6.1 Swap or loan not feasible Notify HQ and COP AOR

3.6.5 3.6.2 FFP / [OAA/T] [AOR] Notify applicable Approve and notify FF and ocean USAID mission carrier

3.6.6 3.6.3 Ocean 3.6.4 shipment YES Inform receiving Awardee of Notify USAID/POD involved? Notify OAA/T ETA, and send shipping documents Freight Forwarder

NO

GO TO 6.0: GO TO 5.0: Transport Port Operations

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4.0 OCEAN SHIPMENT FFP / USAID 4.1 Sales order approved Create tender 4.2 (RFP) Review offers (bids) Freight Forwarder

4.3 Award contract Awardee HQ

4.5 GO TO 5.0: Load cargo Port Operations OceanCarrier

4.4 Deliver cargo to

Vendors U.S. port Commodity

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4.0 OCEAN SHIPMENT 4.1 Create tender (RFP)

4.1.2 Complete Freight RFP Requirements spreadsheet Freight Forwarder Master Solicitation Terms Applicable for All PL480 Title II Cargo

U.S. Food Aid Booking Note for Packaged Commodities, Part I

U.S. Food Aid Booking Note for Packaged Commodities, Part II 4.1.1 4.1.3 Enter freight Compile and post START solicitations (from approved Freight RFP

USAID sales orders) in Requirements WBSCM Summary on USAID website

GO TO 4.2

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4.0 OCEAN SHIPMENT 4.2 Review offers (bids)

4.2.2 Review offers against Awardee HQ tender, following consistent, transparent, fair, and 4.2.5 effective procedures 4.2.4 and USAID uniform Review and Send notification standard booking finalize any GO TO 4.3 of freight award to guidelines concerns with PVO USAID Incoterms Quick Freight Forwarder Reference CHART

4.2.3

USAID Agree on potential freight award plan (via conference call) USDA

4.2.1

Freight RFP posted Enter freight on USAID website offers in WBSCM (via fax or email

OceanCarrier for bulk)

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4.0 OCEAN SHIPMENT 4.3 Award contract

4.3.1 4.3.2 4.3.4 Receive notice of CAR Make booking contract Issue booking for vessel booking with ocean carrier, note (or charter Freight Forwarder posted on USDA subject to approval party for bulk) website (see PROCUREMENT 3.3) Bulk Commodity Charter Party Shipping Contract EXAMPLE

4.3.5 Sign booking note (or charter party)

Awardee HQ 4.3.3 (with ocean carrier) Review and approve booking contract

Freight award finalized GO TO 4.4 USAID

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4.0 OCEAN SHIPMENT 4.4 Deliver cargo to U.S. port

4.4.1 Notify USDA immediately Awardee HQ

4.4.5 NO Monitor deliveries and enter Over, Short & Damage Report in WBSCM Freight Forwarder

Vessel at port according to START agreed shipping schedule? OceanCarrier

4.4.2 [KCCO] Determine disposition

USDA YES of scheduled commodity 4.4.4 WBSCM generates daily 4.4.3 advance shipping notice (ASN) of commodity that has 4.4.6 Transport commodities to contracted left suppliers Pass title to the commodity delivery point/U.S. port to Awardee (generally FAS or FOB vessel at U.S. port) Commodity Vendors

GO TO 4.5

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4.0 OCEAN SHIPMENT 4.5 Load cargo

4.5.1 Contracted inspection company conducts START Vessel Loading Observation (VLO) USDA (continues until vessel is loaded)

4.5.7 4.5.9 Immediately notify Send shipping 4.5.6 CCC of loss or damage documents to GO TO 5.0: caused by the act or Verify piece PVO in sufficient Port omission of a third Operations count time to advise party, and assign to of arrival of CCC any claim against Freight Forwarder shipment the third party 4.5.2 (If containers) Apply desiccant 4.5.5 Issue piece count (or lifting report for containers)

NO YES 4.5.3 4.5.4 4.5.8

OceanCarrier Load Bulk Fumigate commodities commodity? Vessel sails vessel onto vessel

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5.0 PORT OPERATIONS

5.1 Cargo loaded Establish and maintain good networking relations with all concerned donor, government, and port representatives; attend in-country in U.S. port PVO consortium meetings; communicate daily with ocean carrier shore captain, independent surveyor, and C&F agent to review/plan daily workspace (ongoing)

5.2 Commodity Management Update (or issue) C&F agent and independent 5.9 surveyor contracts 5.4 5.3 5.5 Dispatch Prepare commodity Process all discharge Prepare for from port necessary and vessel clearances dispatch arrival plans FAgent

& 5.6 5.7 C Discharge and Commodity Dispatch Planning Inspect Discharge Authorization GUIDELINES and clear commodity for Clearance TEMPLATE vessel from vessel

5.10 5.8 Complete Inspect discharge commodity survey report

Types and Causes Independent Survey Independent Surveyor of Commodity Report GUIDELINES Damage at Port GUIDELINES

GO TO 7.3: Receive commodity (at warehouse) Local Officials Click here for all Go sub-process tools Back Next page.

5.0 PORT OPERATIONS 5.3 Process all necessary clearances

5.3.1 Establish (and Through bill of At least 1 month in lading? NO advance of vessel maintain) arrival shipment file for all documents YES Commodity

Management Shipping Documents CHECKLIST 5.3.2 Gather required 5.3.5 5.3.4 agency and Obtain health shipping Obtain authorization certificates and END documents in all transit other clearances from HQ countries from government officials

5.3.3

FAgent Apply for customs

& clearance C

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5.0 PORT OPERATIONS 5.5 Prepare for vessel arrival

Vessel departs GO TO 5.6 from U.S. port Surveyor Independent

5.5.8 Prepare final warehouse to receive cargo Commodity

Management 5.5.3

5.5.2 Inform U.S. 5.5.4 5.5.1 freight If bulk 5.5.6 Maintain regular forwarder of Check updates commodity, 5.5.7 communication potential Ensure internal on vessel finalize storage with port delays at port transport If necessary, prepare movement and bagging authorities (due to strikes, schedule transit warehouse to weekly facilities with 5.5.5 weather, or matches vessel receive cargo (ongoing) port officials port Confirm berth arrival congestion) with shore FAgent

& captain, and C obtain port passes Vessel Movement GUIDELINES Local Officials

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5.0 PORT OPERATIONS 5.6 Inspect and clear vessel

5.6.2 Surveyor

Independent Inspect ship and captain’s log, and conduct hatch survey FAgent

& Vessel arrives C

5.6.3 5.6.5

[Customs and Is fumigation [Customs 5.6.1 NO GO TO 5.7 Health Officials] necessary? Officials] [Port Authorities] Inspect cargo on Process bill of Authorize cargo vessel entry manifest and direct Local Officials vessel to berth YES

5.6.4 Move commodity to quarantine warehouse at port OceanCarrier

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5.0 PORT OPERATIONS 5.6.4 Move commodity to quarantine warehouse (upon vessel arrival)

5.6.4.1 5.6.4.10 Fumigation Arrange quarantine Arrange and required OceanCarrier warehouse and conduct discharge commodity fumigation FAgent & C 5.6.4.9

Bulk Tally actual number NO commodity? of break bulk units discharged by stevedores YES

5.6.4.3 5.6.4.2 Obtain copies of 5.6.4.5 5.6.4.8 Observe port and ship 5.6.4.6 5.6.4.4 Calculate quantity Furnish daily commodity records of cargo lost Complete bulk tally totals and Independent Surveyor discharge to (including scale Verify cargo during discharge, draft survey, and other pertinent silo, and weights and holds are and specify how request calibration information record scale empty such losses report about the discharging calibration) to GO TO 5.8 occurred bagging method show quantity discharged

5.6.4.11 5.6.4.7 [Customs Officials] Port Bag cargo Process bill Authorities of entry Go Back Next page.

5.0 PORT OPERATIONS 5.7 Discharge commodity from vessel

START

Bulk commodity? YES GO TO 5.7.1

NO

Containerized YES GO TO 5.7.2 commodity?

NO

GO TO 5.7.3

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5.0 PORT OPERATIONS 5.7.1 Discharge BULK commodity from vessel

START

5.7.1.4 5.7.1.6 5.7.1.7 5.7.1.1 Obtain copies of Calculate quantity Notify the Awardee 5.7.1.8 5.7.1.2 5.7.1.5 port and ship of cargo lost immediately if Verify Complete bulk Observe commodity records Verify cargo during discharge, additional services calibration draft survey and discharge to silo, and (including scale holds are specify how such are necessary to of intake request calibration record discharging method weights) to empty losses occurred, protect cargo or if scales report show quantity and issue notice of the correct quantity discharged loss was not discharged Independent Surveyor

5.7.1.3 Furnish daily tally totals and other pertinent information about the bagging

5.7.1.9 Bag cargo Port Authorities

GO TO 5.8

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5.0 PORT OPERATIONS 5.7.2 Discharge CONTAINERIZED commodity from vessel

START

Evidence of tampering? GO TO 5.8

YES NO Independent Surveyor 5.7.2.3 5.7.2.1 Record 5.7.2.6 5.7.2.2 container and 5.7.2.4 Tally actual Reseal Move seal numbers, number of If tampering on containers and 5.7.2.8 containers verify containers vessel, notify ocean draft discharge to container numbers with carrier and port and Tally actual discharged by survey yard B/L, and number of stevedores customs officials; if inspect seals tampering at port, 5.7.2.7 break bulk for tampering follow local laws units Ship containers removed FAgent 5.7.2.5 to warehouse from & C Examine NO container contents GO TO 7.3: Receive commodity (at warehouse)

Containers destuffed YES at port? Local Officials

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5.0 PORT OPERATIONS 5.7.3 Discharge BREAK BULK commodity from vessel

START Independent Surveyor

5.7.3.1 5.7.3.2 Tally actual number If necessary, of break bulk units move GO TO 5.8 discharged by commodity to FAgent port

& stevedores

C warehouse/ transit shed Local Officials

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5.0 PORT OPERATIONS 5.8 Inspect commodity

START

Commodity on 5.8.1 NO a through bill NO GO TO 5.9 of lading? Immediately 5.8.3 separate Commodity Units damaged, looks or smells NO Sample unit YES underweight? underweight, or bad? weight for overweight uniformity units from other 5.8.8 stock YES YES Complete delivery survey report Independent Surveyor

GO TO 5.8.2

5.8.5 5.8.4 Complete reconstitution report Reconstitute (for reimbursement of cost) FAgent

& Marine Reconstitution GUIDELINES

C 5.8.7 Complete loss report

5.8.6 File notice of loss/ damage (letter of protest) with ocean Commodity

Management carrier

Notice of Loss (Letter of Protest) EXAMPLE

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5.0 PORT OPERATIONS 5.8.2 Commodity looks or smells bad

5.8.2.1 File notice of loss/ START damage (letter of protest) with ocean NO carrier Notice of Loss (Letter of Protest) EXAMPLE 5.8.2.3 5.8.2.4

Independent Surveyor Dispose of Complete 5.8.2.5 commodity in Commodity certificate YES YES Complete manner agreed destroyed? of 5.8.2.2 loss report upon with commodity Notify port health officials Certification states USAID destruction and USDA; collect samples, commodity unfit for submit for analysis, and human Certificate of obtain certification consumption? Commodity

Commodity regarding the condition of Destruction Management the commodity Disposal of Unfit TEMPLATE Commodity GUIDELINES NO Commodity Analysis GUIDELINES

CONTINUE TO 5.8.3 FAgent & C

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5.0 PORT OPERATIONS 5.9 Dispatch commodity from port

5.9.1 If commodity in port START warehouse or transit shed, conduct ex-shed survey 5.9.7 Discharge survey Independent Surveyor Issue daily 5.9.4 dispatch report differs from sum to receiving of waybills for all Load sound trucks? warehouse 5.9.2 commodity onto transport Coordinate dispatch NO plan with port 5.9.6 Daily Dispatch Report TEMPLATE authorities Document all dispatched

FAgent commodity with

& waybills C 5.9.3 YES END Receive dispatch 5.9.5 authorization from port authority Monitor transporter, vehicle condition, and cargo loading 5.9.8 Complete loss report Commodity Management

5.9.9 File claim against port and collect reimbursement Awardee HQ

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5.0 PORT OPERATIONS 5.10 Complete discharge survey report

5.10.1 5.10.7 5.10.8 Compare Obtain copies discharge tally Reconciled tally Reconciled tally of all port Submit final START NO NO to port/vessel > bill of lading? < bill of lading? documents, discharge (ex- tally, and and attach to tackle) survey reconcile discharge report differences survey report YES

YES 5.10.5 Independent Surveyor File written notice of loss/damage (letter of 5.10.2 protest) with ocean 5.10.9 Notify HQ of receipt of carrier quantities > 5% of Notice of Loss (Letter of Protest) Promptly initiate normal tolerance B/L EXAMPLE claims against for packaged (or >2% ocean carrier for damage/loss of B/L for bulk) 5.10.6 Complete loss report Commodity Management Marine Loss Claim GUIDELINES

5.10.3 END Request clearance for

FAgent additional commodity, and &

C arrange additional transport

5.10.4 If applicable, request

COP additional ITSH funds to cover excess landed commodity

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5.0 PORT OPERATIONS 5.10.9 Promptly initiate claims against ocean carrier for damage or loss

5.10.9.1 Record the names and addresses of 5.10.9.4 5.10.9.3 individuals present at START If loss estimated at

Independent Surveyor the time of discharge Provide USDA information >$5,000, provide a and during survey who on the commodity narrative chronology or can verify the quantity quantity, loss reason, and, other commentary to lost or damaged if applicable, cause of assist in the damaged cargo adjudication of claims 5.10.9.5 Prepare claim package, and (with 5.10.9.2 waiver from USAID)

Commodity assign claim rights Management If damage or loss to USDA >$500, notify FFP/AOR

Awardee HQ END

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6.0 TRANSPORT Logistics

6.1 START Determine transport needs

6.2 6.3 6.4 Administer END

Commodity Prepare Award Management tender(s) contract(s) contract(s) Program Management

Transport Contracting GUIDELINES Procurement

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6.0 TRANSPORT 6.1 Determine transport needs

6.1.4 START Determine Procurement availability of transport and market rates 6.1.2 Conduct route assessment (identify 6.1.3 6.1.1

Logistics alternative or Establish transport Map storage standby as capacity requirements and distribution necessary) (based on tonnage 6.1.5 points capacity per link and Conduct planning meeting type of transport) to finalize transport plan:  Number of units and type of transport Determination of Transport Needs GUIDELINES  Total quantity to be transported Commodity Management  Storage/delivery points  Frequency of transportation Sectors

ProgramTechnical GO TO 6.2

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6.0 TRANSPORT 6.2 Prepare tender(s)

6.2.1 START Determine method of contracting (MT, MT/km, trip charter, or time charter) Logistics

6.2.2 Detail transporter qualifications and duties 6.2.6 Create bid/tender 6.2.3 committee 6.2.5 represented by

Commodity Determine Management Review and Finance, standard clauses finalize tender Administration, to include in documents Program, Senior contract Management, and (where applicable) Internal Audit Program Management

6.2.4 6.2.7 Prepare tender Advertise documents tender Procurement

Transport Services Tender for Bid EXAMPLE

GO TO 6.3

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6.0 TRANSPORT 6.3 Award contract(s)

6.3.1 6.3.4 START Collect and record Finalize submitted bids contracts Tender Committee /

Bid Transport Contract EXAMPLE Commodity Management

6.3.6 6.3.3 Conduct briefing meeting with all GO TO 6.4 Conduct in-person contracted verification of transporters trucks, and

Logistics insurance and 6.3.2 ownership documents Verify bidders are not on any U.S. government blocked persons/ 6.3.5 entities list Distribute Vehicle Inspection contracts to CHECKLIST relevant parties Procurement

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6.0 TRANSPORT 6.3.1 Collect and record submitted bids

6.3.1.4 6.3.1.2 6.3.1.3 6.3.1.1 File envelopes, All committee Draft minutes of Open bids in the documents, and START members sign every the entire process, END presence of all minutes along with bid envelope and all signed by all committee members other tender Tender Committee documents committee members / documents Bid

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6.0 TRANSPORT 6.4 Administer contract(s)

Contract(s) signed 6.4.4 Conduct periodic performance review Logistics

Transporter Performance Rating TEMPLATE 6.4.3 6.4.1 6.4.2 Receive transporter Coordinate with Routinely invoices, confirm transporters 6.4.5 monitor delivery and losses concerning transporter recorded on Provide distribution performance waybills, and submit feedback to plans END to Finance Program, budget holder, Commodity

Management and Procurement Program Management

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7.0 WAREHOUSING

Program 7.2 7.5 Management 7.1 Commodity Hire Process Establish manager hired warehouse commodities warehouse(s) staff into different end products (e.g., flour)

YES Commodity Management

7.4 Maintain Commercial commodity processing NO 7.6 required? GO TO 8.0: 7.3 in good Dispatch Distribution

Warehouse condition

Management commodity Receive commodity

Commodity Dispatch GUIDELINES

Dispatch Authorization TEMPLATE Casual Labor

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7.0 WAREHOUSING 7.1 Establish warehouse(s)

7.1.4 If necessary, obtain USAID approval for budget modification ProgramManagement

7.1.2 7.1.3 7.1.1 Arrange for Hire/contract fumigation, 7.1.6 Select and adequate 7.1.5 START pest, and contract security for Establish standard rodent control Purchase warehouse warehouse operating procedures services as equipment, Commodity (SOP) for commodity Management premises necessary supplies, and receipt and dispatch reconstitution materials Driver Timesheet TEMPLATE Warehouse Daily Warehouse USAID Programmatic Report TEMPLATE Selection CHECKLIST Environmental Assessment (PEA) for Fumigation of Warehouse Equipment and Warehouse Contract Stored Commodity FACT Supplies CHECKLIST TEMPLATE SHEET Procurement

END

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7.0 WAREHOUSING 7.2 Hire warehouse staff

7.2.2 7.2.1 ProgramManagement Add to job Determine staffing descriptions: specific 7.2.3 requirements (i.e., 7.2.4 commodity duties positions/number of Select and (with (with performance Provide staff with START staff to ensure HR) hire staff in END levels for each), formal and/or on the adequate a transparent commodity control job training management, process responsibilities, and supervision, and clear lines and limits segregation of duties) of authority Commodity Management Warehouse Manager Core Competencies Warehouse Staff Training CHECKLIST

Warehouse Staffing GUIDELINES Warehouse Staff Safety Guide

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7.0 WAREHOUSING 7.3 Receive commodity

7.3.4 7.3.1 7.3.2 7.3.3 Receive dispatch information File tally sheets, (from port C&F agent, secondary Prepare for Inspect and Account for waybills, and, if END warehouse, FDP, receipt of count commodity or other agency) applicable, daily commodity commodity received Warehouse report Management

Warehouse Daily Report TEMPLATE

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7.0 WAREHOUSING 7.3.1 Prepare for receipt of commodity

7.3.1.3 7.3.1.2 Engage adequate 7.3.1.1 START Clean area around casual labor (and, if END Lay out pallets warehouse and necessary, additional compound security) per local labor regulations Warehouse Management Warehouse Storage Capacity Casual Labor Recording for Commodities GUIDELINES TEMPLATE

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7.0 WAREHOUSING 7.3.2 Inspect and count commodity

START

7.3.2.3 7.3.2.4

Warehouse Tally commodity Management as it is off- Inspect 7.3.2.1 loaded (or commodity Commodity GO TO B.1: 7.3.2.5 Inspect trucks containers as and weigh looks or smells YES Commodity quality issues Sign waybill as they arrive they are random bad? destuffed) in samples (at presence of least 10%) NO transporter Waybill TEMPLATE

Commodity Tally Commodity Packaging 7.3.2.6

) Vehicle L Sheet TEMPLATE Random Weight damaged or / Inspection GO TO B.2: TEMPLATE units Complete CHECKLIST YES Reconstitution

if if TB underweight/ delivery survey ( overweight? (if TB/L) Independent Surveyor NO END

Tally sheet quantity < YES GO TO B.4: Discrepancy 7.3.2.2 with waybill ) waybill quantity L / Conduct

HealthOfficials inspections if if TB ( & NO Customs

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7.0 WAREHOUSING 7.3.3 Account for commodity received

7.3.3.5 7.3.3.4 7.3.3.3 Prepare casual Update laborer payment Complete stack END

Warehouse 7.3.3.1 7.3.3.2 warehouse sheets, and Management cards ledger submit to START Stack commodity Conduct Finance according to physical count requirement Commodity Stack standards Warehouse Ledger Casual Labor Recording Card TEMPLATE TEMPLATE TEMPLATE

Commodity Stacking GUIDELINES Casual Laboers

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7.0 WAREHOUSING 7.4 Maintain commodity in good condition

7.4.1 Establish context-specific standard operating ONGOING procedures (SOP) for fire prevention and control, warehouse cleaning, fumigation, and pest/rodent control

Commodity Damage Control GUIDELINES Commodity Management Warehouse Cleaning Plan TEMPLATE Warehouse Fire Prevention and Control CHECKLIST 7.4.4 Count GO TO B.3: Reconcile NO Possible records with reconciled? misappropriation physical count 7.4.3 Conduct and YES 7.4.2 document random physical Conduct and counts of document daily commodity END

Warehouse inspection of

Management stacks stacks for pests and commodity quality

Commodity Stack Inspection CHECKLIST Casual Labor

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7.0 WAREHOUSING 7.4.2 Conduct and document daily inspection of stacks for pests and commodity quality

Commodity Indication of Indication of Containers are ONGOING NO NO NO looks or smells NO END infestation? rodents? damaged? bad?

YES YES YES

YES GO TO B.2: Reconstitution Commodity

Management 7.4.2.1 7.4.2.4 Notify fumigation Arrange for inspection service of commodity by a 7.4.2.2 public health official Notify pest/ or other competent rodent control authority approved by service USAID Warehouse

Management Overview of Phosphine Fumigation Management Plan TEMPLATE

GO TO B.1: Quality issues 7.4.2.3 If necessary, restack

Casual Labor commodity

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7.0 WAREHOUSING 7.5 Process commodity into different end product

START Procurement

7.5.1 7.5.2 Ensure USAID approval Enter into written for processing (such as agreement with Program grain milling) commodity processor Management Commodity Management

7.5.3 7.5.4 7.5.5 Fully account to Awardee Return or dispose of for all commodities Label cartons, bags, or the bags/tins in which delivered, maintain tins containing the end the commodity was adequate records, and product in accordance END received from the submit periodic reports with approved Awardee according to pertaining to the Branding and Marking instructions from the performance of the Plan Commodity Processors Awardee agreement

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7.0 WAREHOUSING 7.6 Dispatch commodity Logistics

7.6.1 ONGOING Monitor weather conditions and other accessibility or programmatic factors, and consider pre-positioning commodity

7.6.2

Commodity Dispatch authorization/ Management distribution plan received Prepare dispatch

7.6.5 7.6.4 File dispatch 7.6.6 Account for authorization/ Generate dispatched dispatch plan, tally

Warehouse 7.6.3 monthly report Management commodity sheets, waybills, Load and daily reports commodity Commodity Movement Monthly Report TEMPLATE

Warehouse Documents CHECKLIST

Warehouse Daily Report TEMPLATE END Casual Laborers

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7.0 WAREHOUSING 7.6.2 Prepare dispatch

7.6.2.2 Share dispatch plan with transporter Logistics Commodity Management 7.6.2.1 START (If necessary) Develop dispatch plan 7.6.2.4 7.6.2.3 Select commodity Engage adequate following FIFO, with casual labor and, if reconstituted or fast- necessary, additional

Warehouse approaching BUBD

Management security commodities first

7.6.2.5 If necessary, pre-package or END pre-position commodity Casual Labor

Commodity Prepackaging GUIDELINES

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7.0 WAREHOUSING 7.6.3 Load commodity

START

Logistics 7.6.3.1 Coordinate transport and labor

7.6.3.5 7.6.3.7 Reconcile tally 7.6.3.2 7.6.3.4 count with 7.6.3.6 Prepare casual Inspect driver (With transporter) dispatch laborer payment Verify truck is documents and Tally commodity authorization/ sheets and loaded properly

Warehouse truck condition as it is loaded distribution plan submit to Management and transporter’s Finance tally Vehicle Inspection CHECKLIST Commodity Tally Casual Labor Recording TEMPLATE Sheet TEMPLATE

END 7.6.3.3 Load commodity Casual Laborers

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7.0 WAREHOUSING 7.6.4 Account for dispatched commodity

7.6.4.1 7.6.4.2 Prepare 7.6.4.3 7.6.4.4 7.6.4.5 Inform waybill(s) per START receivers of Conduct Complete stack Update END reconciled tallies, commodity physical count cards warehouse ledger and obtain driver’s dispatched Warehouse signature Management

Waybill TEMPLATE

Waybill Tracking TEMPLATE

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8.0 DISTRIBUTION Program Management

START

Commodity 8.6 Management Report on distribution 8.2 8.1 Plan before As instructed by program every END management, register new distribution recipients, and issue recipient ID/ ration card against some form of identification (ongoing)

Recipient Registration GUIDELINES Distribution Team 8.3 8.4 8.5 Receive Set up commodities Distribute distribution at distribution commodity site site Local Food Distribution

Stakeholders Gender GUIDELINES

Distribution Site Distribution Procedures Set-Up CHECKLIST GUIDELINES

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8.0 DISTRIBUTION 8.2 Plan before every distribution

8.2.3 START Verify stock

Warehouse 8.2.5

Management availability Arrange for commodity transport to distribution sites

8.2.1 Commodity

Management Prepare distribution plan, referencing DIP, and submit to warehouse management and distribution team Program Management Distribution PLAN TEMPLATE 8.2.6 8.2.2 Inform 8.2.4 recipients Verify eligibility about 8.2.7 and update Finalize distribution distribution list distribution Assign people 8.2.8 details (who, (subset of master plan to perform where, when, Locate and/or recipient list) unloading, Distribution Team ensure secure and how scooping, and site storage Distribution LIST much) crowd control TEMPLATE tasks Local Commodity Ration Distribution Distribution Site Roles and Distribution Site

Stakeholders Measurement GUIDELINES Notification Responsibilities CHECKLIST Storage GUIDELINES CHECKLIST

END Go Back Next page.

8.0 DISTRIBUTION 8.3 Receive commodities at distribution site

8.3.2 Record discrepancy (and information on losses) on waybill

NO

Distribution Team 8.3.1 8.3.4 Tally commodity as it is off-loaded, Tally matches Set up commodity Commodity arrives 8.3.3 and randomly quantity stated for distribution or END at distribution site YES weigh containers on waybill? Sign waybill move to (and in presence of record in) site transporter and storage local stakeholders Local Stakeholders

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8.0 DISTRIBUTION 8.4 Set up distribution site

8.4.2 8.4.1 8.4.3 Arrange site, ensuring START Assemble Set up feedback/ END Distribution Team minimum standards and distribution complaint donor branding materials mechanism compliance Local Distribution Site USAID Branding and Marking Set-Up CHECKLIST

Stakeholders GUIDELINES

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8.0 DISTRIBUTION 8.5 Distribute commodity

8.5.1 8.5.5 8.5.7 Conduct pre-distribution 8.5.4 At end of distribution, Dispose of address to provide reconcile commodity START [Recipients] empty information regarding received at site with END Acknowledge receipt containers per ration entitlement and commodity distributed of ration established how to collect ration and commodity procedures remaining Distribution Team

8.5.6 8.5.3 Record any 8.5.2 undistributed Provide each Call and verify Quantities commodity on site recipient with YES recipients on reconcile? storage stack card, or ration distribution list prepare return waybill entitlement and return to dispatching warehouse NO

GO TO B.5 Local Stakeholders

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8.0 DISTRIBUTION 8.6 Report on distribution

8.6.4 8.6.2 Make recipient Approve projections for END distribution report next distribution period ProgramManagement

8.6.3 8.6.1 Distribution is If possible, debrief END completed Prepare community on distribution report distribution

Distribution REPORT TEMPLATE Distribution Team

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9.0 FOOD DISTRIBUTION MONITORING

Program START Management

9.7 Commodity

Management Process community 9.1 feedback and 9.2 complaints on Procure distribution monitoring Train 9.3 9.6 process equipment monitors 9.8 and materials Finalize Synthesize completed monitoring questionnaires and Utilize food Leader schedule produce monitoring distribution report monitoring reports to improve ProgramMonitoring Team Food Distribution Food Distribution distribution Food Distribution Monitoring Monitoring Monitoring Follow-Up equity and EQUIPMENT PROCEDURES Issues Tracking Sheet process CHECKLIST GUIDELINES TEMPLATE 9.4 9.5 Per schedule, Per schedule (and before collect data at next distribution) conduct distribution HH-level, post- Monitors sites distribution interviews

Focus Group Discussions GUIDELINES ProgramMonitoring Team Local Stakeholders Click here for all END Go sub-process tools Back Next page.

9.0 FOOD DISTRIBUTION MONITORING 9.3 Finalize monitoring schedule

9.3.1 9.3.2 Develop schedule Synchronize 9.3.5 based on Post-distribution START schedule with NO END monitoring plan monitoring? Verify logistics to

Leader Program and and current implement schedule Commodity distribution Management plan(s) ProgramMonitoring Team

YES

Monitors 9.3.3 9.3.4 Share schedule Assign community with community roles and

ProgramMonitoring Team committee responsibilities Local Stakeholders

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9.0 FOOD DISTRIBUTION MONITORING 9.4 Per schedule, collect data at distribution sites

START

9.4.6 9.4.1 9.4.2 9.4.4 9.4.5 Reconcile Complete on-site 9.4.3 undistributed distribution Randomly Randomly At end of distribution, Verify selected commodity ProgramMonitoring Team monitoring select and weigh/measure reconcile commodity recipients are on and, if questionnaire data interview commodity distributed with distribution list applicable, for site layout and recipients received distribution list empty bags/ operation tins

END Local Stakeholders

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9.0 FOOD DISTRIBUTION MONITORING 9.6 Synthesize completed questionnaires and produce monitoring report

9.6.3 9.6.5 9.6.4 Collate data with Submit reports to Synthesize completed information collected Program Management, forms, and produce from community (e.g., Commodity Leader distribution monitoring help desk) and Management, and report within time frame distribution team Community Distribution set for report production completed observations Committee ProgramMonitoring Team 9.6.2 Enter monitoring data into electronic system END 9.6.1 Submit completed monitoring questionnaires to team

Monitors leader ProgramMonitoring Team

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10.0 CLOSE-OUT

10.4 Stop registration according to plan, and inform recipients of final distribution Distribution Team

10.10 Retain commodity records 10.9 for 3 years (longer for open claims or COP Submit outstanding audits) or per project close- 10.6 Awardee policy, out report whichever is longer 15 months 10.3 Close out before EOP within 90 days Develop and distribution of EOP submit close-out agencies 10.1 plan (30 to 90 days END Prepare for before EOP) close-out Program Management

10.8

10.5 10.7 Complete final Food Aid Program 10.2 CSR, RSR, and Close-Out Guide Implement Draft and submit Produce LSR commodity commodity close-out Management commodity section of report section of close- approved close- out plan out plan (2 months prior to EOP)

Commodity Close-Out Commodity Management Commodity Plan EXAMPLE Close-Out CHECKLIST Commodity Close-Out Plan TEMPLATE Click here for all Go sub-process tools Back Next page.

10.0 CLOSE-OUT 10.1 Prepare for close-out

10.1.5 10.1.6 Hold “lessons learned” Form interdepartmental workshop to capture END COP close-out team, and assign institutional memory close-out coordinator START before close-out begins

10.1.4 Submit close- out schedule with final PREP 10.1.1 and negotiate with AOR. Determine when to stop recipient

Program registration (by Management activity) 10.1.2 Determine final sales order and distribution dates

10.1.3

Management Develop final AER and CP Commodity

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10.0 CLOSE-OUT 10.2 Produce commodity section of close-out plan

START

10.2.1 Review and reconcile all relevant

Commodity commodity Management documents 10.2.6 10.2.4 10.2.2 10.2.3 10.2.5 Develop 10.2.7 Report all Inventory If excess plan to close 10.2.8 Reconcile documents that Develop staff commodity commodity, out all ITSH line do not reconcile realignment/ Plan for assets and develop service items to COP and, termination unspent reconcile with commodity provider depending on plan ITSH original (with disposition contracts the document, documents Finance) plan (with HR) to USAID (with Finance)

END ProgramManagement

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10.0 CLOSE-OUT 10.3 Develop and submit close-out plan

10.3.1 10.3.4 END 10.3.2 10.3.3 Gather and organize Conduct workshop with all START Update inventory lists Prepare draft relevant documents recipient agencies to review/ and disposition plans close-out plan (per A133) negotiate plan and identify risks

10.3.11 ProgramManagement Disseminate plan to all partners 10.3.5

COP Finalize and submit draft plan to Awardee HQ

10.3.9 Address issues 10.3.6 and resubmit Approve and submit to FFP/W and mission Awardee HQ

10.3.7 10.3.8

Acknowledge receipt Issues? YES Send issues within 1 week and letter to review Awardee HQ FFP / NO USAID 10.3.10 Send approved plan to Awardee Go Back Next page.

10.0 CLOSE-OUT 10.5 Implement commodity section of approved close-out plan USAID

10.5.1 Seek advice from USAID mission and 10.5.7

COP 10.5.6 FFP/POD; dispose of Terminate commodity per Complete remaining staff instructions transfer of funds and service to USDA/CCC, if contracts applicable according to all terms 10.5.2 YES 10.5.3 START Dispose of Dispose of assets with supplies with 10.5.4 Sound commodity value >$5,000 at aggregate value balance NO time of Account for 10.5.5 END anticipated? >$5,000 and a Commodity proceeds from

Management purchase and a remaining Complete or waive all remaining sales of assets, useful life of >1 claims resulting from useful life of >1 supplies, or year commodity loss year empty containers

Asset Inventory Disposition TEMPLATE Program Management

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A.0 INTERNAL CONTROL and QUALITY OVERSIGHT InternalAudit COP

A.3 Implement quality oversight Continued A.1 from 1.0 activities Review compliance regulations and A.4 required donor ProgramManagement A.2 Submit required approvals stated in commodity reports Project Award Establish document internal control systems Ongoing Commodity Management

Commodity Warehouse

Management Reporting Process GUIDELINES

/ Donor Approval CHECKLIST MIS Team Monitoring

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A.0 INTERNAL CONTROL and QUALITY OVERSIGHT A.2 Establish internal control systems COP

A.2.1 A.2.3 Establish Establish standard

ProgramManagement commodity START procedures for END warehouse handling commodity internal control A.2.2 loss system Establish commodity distribution internal control system Commodity Management

Warehouse Oversight Warehouse

Management and Control CHECKLIST / MIS Team

Monitoring Distribution Oversight and Control CHECKLIST

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A.0 INTERNAL CONTROL and QUALITY OVERSIGHT A.2.1 Establish commodity warehouse internal control system COP

A.2.1.1 A.2.1.2

Develop policy Establish system to for maintain (and have authorization of available for audit inspection@ ) records/ START commodity receipt, documents for all dispatch, and transactions pertaining reconstitution to the receipt, storage, inspection, processing, A.2.1.4 that ensures A.2.1.3 ProgramManagement separation of and dispatch of A.2.1.5 commodities Develop duties Develop standard Develop and print standard procedures for accounting procedures to END commodity templates and control accounting, internal control warehouse ensuring documents security and segregation of (ongoing) access duties Commodity Dispatch Authorization Warehouse Documents Management TEMPLATE CHECKLIST

Warehouse Access and GACAP Summary Warehouse Ledger TEMPLATE Key Control CHECKLIST Commodity Stack Card TEMPLATE

Waybill TEMPLATE

Commodity Loss Report TEMPLATE

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A.0 INTERNAL CONTROL and QUALITY OVERSIGHT A.2.2 Establish distribution internal control system COP A.2.2.4 A.2.2.1 Ensure monitoring Develop policy for A.2.2.2 personnel are authorization of sufficiently commodity Establish system to independent of distribution plans/ maintain (and have available for audit warehousing, START lists to ensure that inspection) records/ recipient the numbers of documents pertaining to registration, recipients are the distribution and use of distribution, and commensurate with commodities by recipients accounting the levels stipulated functions in the Agreement A.2.2.3 Develop standard ProgramManagement procedures to control commodity distribution to A.2.2.5 ensure that only Update master recipient intended recipients list as needed (for END receive food example, as recipients Team Monitoring / enter or graduate) MIS Commodity Management

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A.0 INTERNAL CONTROL and QUALITY OVERSIGHT A.2.3 Establish standard procedures for handling commodity loss

A.2.3.7 A.2.3.1 Ensure A.2.3.3 A.2.3.2 resolution for all Develop SOP for END Ensure individuals commodity loss handling, Develop SOP for Program who prepare a loss claims

Management investigating, and disposal of damaged START report are not the reporting commodity commodity in (ongoing) same as those who losses in accordance accordance with authorize changes in with USAID USAID regulations inventory records regulations

A.2.3.6 Review loss reports to A.2.3.4 A.2.3.5 ensure accuracy and Ensure staff Provide training on completeness of data, understand their commodity loss SOP and reconcile against Commodity

Management liability for loss of to all commodity source documents, commodity under (and relevant e.g., waybills, physical their control program) staff inventories, and distribution plans (ongoing)

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A.0 INTERNAL CONTROL and QUALITY OVERSIGHT A.3 Implement quality oversight activities

A.3.1 A.3.2

START Conduct internal audits of commodity Conduct independent or internal audits of Sub- END management systems to ensure operational Awardees, or include testing of Sub-Awardees in efficiency and accuracy in record keeping Awardee’s independent audit InternalAudit Commodity Management Audit CHECKLIST

A.3.5 A.3.4 A.3.3 Monitor

ProgramManagement Monitor Monitor warehouse commodity Ongoing operational and burn rate and environment distribution pipeline systems Commodity Management

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A.0 INTERNAL CONTROL and QUALITY OVERSIGHT A.3.3 Monitor operational environment

A.3.3.4 A.3.3.2 A.3.3.3 A.3.3.7 Coordinate with Monitor Monitor host Coordinate with commodity commodity government on other Awardees in Ongoing markets in host import policy in acceptability of region to time sales country host country second-choice orders commodities

Market Assessment ProgramManagement Reporting TEMPLATE NO

A.3.3.5 Pre-approved Review annual commodity YES (fiscal year) call available and forward (sales A.3.3.1 acceptable? order) schedule Review list of posted by USAID START eligible U.S. agricultural commodities

Commodity posted by USAID Management

A.3.3.6 Inform Awardees of other

USAID recipients of USG-donated food commodities in their region

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A.0 INTERNAL CONTROL and QUALITY OVERSIGHT A.3.5 Monitor warehouse and distribution systems

A.3.5.6 A.3.5.3 A.3.5.2 A.3.5.5 Conduct A.3.5.1 Review books Conduct A.3.5.4 unscheduled and records at Periodically Conduct quarterly visits to sites maintained Periodically review food periodic independent distribution by Sub- verify recipient distribution warehouse physical sites to ensure Awardees and eligibility monitoring inspections inventory of all standard distribution process commodity procedures are agencies followed ProgramManagement

Warehouse Warehouse Distribution Monitoring Inspection Report Physical Inventory Performance CHECKLIST TEMPLATE GUIDELINES

START

Ongoing A.3.5.9 A.3.5.7 Replace borrowed Verify commodity A.3.5.8 commodities with dispatch, and Periodically review commodities subsequent transport contracts transferred by USAID, distribution, is in and performance per quantity agreement with and value distribution plans agreed upon with USAID Commodity Management

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A.0 INTERNAL CONTROL and QUALITY OVERSIGHT A.3.5.2 Conduct quarterly physical inventory of all commodity

A.3.5.2.2 A.3.5.2.1 Reconcile records (if Count matches START Count NO GO TO B.3 necessary accounting records? commodity between warehouses)

YES ProgramManagement Warehouse Physical Inventory Reconciliation END TEMPLATE

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A.0 INTERNAL CONTROL and QUALITY OVERSIGHT A.4 Submit required commodity reports

A.4.4 A.4.3 A.4.1 Enter quarterly Enter quarterly Verify reporting Damage or Misuse A.4.5 ProgramManagement Commodity Status Report (CSR), requirements Commodity Report START Recipient Status Report (RSR), Submit PREP Ongoing stated in the (DMCR) and (if any loss during quarter) Award terms into QWICR (recurs annually) Loss Summary Report (LSR) and conditions for any loss that into QWICR exceeds $500

Creating a PREP Guidance 2015 PREP Process GUIDELINES for

Commodity Management Commodity Managers

A.4.2 Prepare periodic warehouse status reports Warehouse Management

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A.0 INTERNAL CONTROL and QUALITY OVERSIGHT A.4.5 Prepare and submit PREP (recurs annually)

A.4.5.2 A.4.5.1

Sectors Complete Describe START commodity proposed use of

ProgramTechnical management commodity section of DIP

CM Budget Preparation WORKSHEET FFPIB 18-01 Eligible Uses of Section 202(e) for FFP Awards

FFPIB 18-02 Eligible Uses of ITSH for FFP Awards

FFPMIS RESOURCES

A.4.5.3 Revisions to NO Complete AER and program plan?

Commodity Management commodity pipeline

Commodity Pipeline Analysis TEMPLATE YES

A.4.5.4 A.4.5.6 A.4.5.7 Submit TA Sign TA Submit PREP (in COP modification modification FFPMIS) request to FFP

A.4.5.5 A.4.5.8

FFP END / Approve TA Approve PREP modification

USAID request

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B.0 INTERNAL LOSS

Difference between Difference between quantity of Commodity looks Commodity bags/tins/cartons Commodity quantity of commodity off-loaded commodity received at distribution site damaged or smells are underweight missing and quantity stated on and quantity of commodity distributed bad transporter’s waybill or returned

GO TO B.1 GO TO B.2 GO TO B.3 GO TO B.4 GO TO B.5

YES

B.9 Requesting B.11 B.7 Third party a waiver Awardee is File a claim NO NO reimburses NO Pursue claim Record loss from liable? against Commodity against third Management ? in QWICR USAID? responsible party third party YES QWICR Users’ Guide B.6 Internal Loss Claims GUIDELINES B.10 Complete YES loss report, Loss value NO YES Reimburse CCC and less than according to SOP reconcile $500? commodity B.8 ledger Upload supporting B.12 documents in QWICR, END Close claim and get concurrence from USAID

Commodity Loss Report TEMPLATE Warehouse

Management or Go Distribution Team Click here for all Back sub-process tools Next page.

B.0 INTERNAL LOSS B.1 Commodity looks damaged or smells bad

B.1.2 B.1.1 Collect samples and If required by submit to qualified Commodity is Commodity is Commodity is local USAID lab/person for certified fit for START NO certified fit for NO certified unfit for mission, send analysis and human other use? any use? completed quality certification consumption? feedback loop per regarding the instructions condition of the commodity Commodity Feedback Loop YES YES Simple Timeline Commodity Analysis GUIDELINES Commodity Feedback Loop YES Commodity

Management Complex Timeline GO TO B.1.4 GO TO B.1.5 Commodity Feedback Loop Quality Report

Units full NO GO TO B.2 weight?

YES

B.1.3 Accept commodity into warehouse stock (treated as END reconstituted commodity) for intended use Warehouse Management

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B.0 INTERNAL LOSS B.1.4 Commodity is certified fit for other uses

Is transfer NO possible? B.1.4.1 Determine alternative use YES NO and, if valued at $500 or more, request concurrence Commodity Management of USAID for disposition of B.1.4.3 Is sale START commodities B.1.4.4 possible? Sell (via approved B.1.4.5 tender process) for Transfer to an (with local authorities) the most appropriate approved FFP Donate to a use at the highest program for use governmental or obtainable price as nonfood, and charitable notify AID/W of organization for transfer nonfood use (with Procurement) YES Disposal of Unfit Commodity GUIDELINES CAUTION: Specific testing is needed to certify ProgramManagement commodity is fit for animal consumption.

B.1.4.6 B.1.4.2 Complete a waybill, with the Obliterate, remove, or person purchasing or receiving cross out all USG the unfit commodity signing the markings before sale receipt Information section Warehouse Management

GO TO B.6

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B.0 INTERNAL LOSS B.1.5 Commodity is certified unfit for any use

B.1.5.6 Complete B.1.5.7 B.1.5.5 Certificate of Complete the START Destroy Commodity receipt information commodity Destruction, and on waybill, and get witness B.1.5.3 ensure it is signed signatures by the warehouse If valued at $500 or B.1.5.4 manager and Commodity Management more, get USAID Certificate of Commodity independent B.1.5.2 Assemble Destruction EXAMPLE concurrence (in witnesses, person(s) witnessing Determine writing) for method including the destruction destruction of destruction, and representative B.1.5.1 method request the presence of local of a USAID Obtain approval authorities from required representative at the local authorities destruction

B.1.5.8 Submit report to USAID with lab results, Certificate of Destruction,

Program quantities of

Management commodities, and method of destruction

GO TO B.6

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B.0 INTERNAL LOSS B.2 Commodity packaging units are underweight

START Program Management B.2.1 If reconstitution costs will exceed $500, obtain approval from USAID in advance Commodity Management

B.2.6 B.2.2 B.2.4 B.2.5 B.2.7 B.2.3 Return to inventory, Assemble Open packaging Fill units to Produce report Follow stacking and accounting reconstitution and inspect standard established for reconstituted materials and commodity weight and controls commodity separately casual laborers quality reseal from other commodity

Reconstitution Commodity GUIDELINES Warehouse Management Reconstitution Report TEMPLATE

CONTINUE TO B.6

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B.0 INTERNAL LOSS B.3 Possible misappropriation of commodity

B.3.1 Commodity Management Internal irregularities Inform USAID, found (misuse, B.3.2 START and conduct YES unauthorized Follow Awardee SOP internal distribution, theft by investigation staff)? COP

/ NO B.3.4 B.3.3 Inform USAID, and Program CONTINUE TO B.6 File police report follow their

Management recommendations

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B.0 INTERNAL LOSS B.4 Discrepancy between quantity of commodity off-loaded and transporter’s waybill

B.4.3 Attach copy of waybill to claim for collection CONTINUE TO B.6 submitted to transporter per Commodity

Management signed contract

B.4.2

Warehouse B.4.1

Management Obtain signature on START Record waybill from shortage on transporter/truck waybill driver to acknowledge shortage Distribution Team

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B.0 INTERNAL LOSS B.5 Quantity of commodity received at distribution site ≠ quantity of commodity distributed or returned

B.5.3 Program

Management If investigation indicates criminal CONTINUE TO B.6 activity, file police report and notify USAID B.5.1 B.5.2 START Investigate discrepancy If investigation

Commodity indicates scooping Management problems, recalibrate scoops and/or retrain scoopers Distribution Team

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B.0 INTERNAL LOSS B.9 File a claim against responsible third party

B.9.1 B.9.2 B.9.4 B.9.3 Establish a claim Send claim Upload copies of all Make file and add letter for value follow-up claim letters START reasonable claim info to of commodity to and other relevant attempts to loss claim responsible claim information in collect claim register party QWICR

Internal Loss Claim Internal Loss Claims Register TEMPLATE GUIDELINES

B.9.5 Commodity Management Cost to pursue legal action higher than NO Initiate legal cost of claim? action if necessary

YES

GO TO B.8 CONTINUE TO B.11

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Resources (Additional TOOLS)

FFPMIS PREP Training Slides Abbreviations and Acronyms

Fumigation PEA Tool Annexes Glossary

GACAP (Generally Accepted Commodity Accountability Principles) References

Managing the Supply Chain of Specialized Nutritious Foods (WFP)

OIG Fraud Indicators

OMB Uniform Cost Principles and Audit Requirements for Federal Awards

PREP Guidance 2017

Preventing Corruption in Humanitarian Operations

The Essential Guide to Managing Your USAID Award

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